Published: August 20, 2025
In this article, you’ll learn how identity document checks have evolved into an essential part of secure digital onboarding, compliance and fraud prevention. You’ll also discover how technologies such as MRZ scanning and chip-based verification enhance fraud prevention, streamline user identification, and meet international regulatory standards.
What are Identity Document Checks – Introduction and Overview
As digital transactions become the norm, verifying the identities of individuals has never been more important – or more challenging. Organizations face the dual responsibility of providing seamless user experiences while protecting the business against fraud, identity theft, and regulatory penalties. Identity document checks offer a reliable and efficient way to confirm that customers are who they claim to be. These checks not only help prevent criminal activity but also ensure compliance with strict legal and industry standards.
What Does “Identity Document Checks” Mean in the KYC Environment?
In the context of KYC, identity document checks involve validating official identity documents such as passports or national ID cards. The purpose is to confirm both the document’s authenticity and the identity of its holder. This process involves examining the physical or digital attributes of the document, such as DOVIDs, watermarks, and embedded security features, to ensure they align with standards. Many identity verification systems also cross-reference document data against trusted databases to detect signs of forgery or tampering. By implementing identity document checks, businesses fulfill regulatory requirements aimed at preventing financial crimes like money laundering and terrorism financing. Most importantly, these checks help build trust with customers and regulatory bodies by demonstrating a commitment to secure and compliant operations.
Why are "Identity Document Checks" Crucial for KYC, Onboarding, and Fraud Prevention?
When identity document checks are carried out as part of a KYC process, businesses are protected from fraudulent activity and ensure that only legitimate customers are on board. These checks play a critical role in meeting Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations.
During onboarding, document checks streamline the customer journey by quickly verifying identities, reducing friction, and minimizing manual intervention. This not only improves the user experience but also lowers operational costs.
Effective identity document checks are the first line of defense against fraudsters attempting to use forged or stolen identities. Early detection of fraud helps prevent significant financial losses and reduces the risk of legal consequences.
In today’s competitive landscape, robust identity document checks are no longer optional – they are a business necessity. When carried out as part of a KYC process, these checks protect companies from fraudulent activity and ensure that only legitimate customers are onboarded. This verification process has become essential for maintaining security and regulatory compliance in digital business operations.
Comparing the Confidential Photo From the Chip With the Identity Document and the Document Holder
Many modern identity documents, such as ePassports and ID cards, contain a secure chip that stores biometric data, including a confidential photo of the document holder. Once accessed, the photo can be compared to a live image or selfie submitted as part of the verification process. This chip-based comparison is highly reliable because the data comes directly from the issuing authority and cannot be easily altered or forged. It significantly reduces the risk of impersonation and fraudulent activity, especially compared to manual photo comparisons or superficial document checks. Leveraging this technology significantly improves the accuracy and security of the identity verification process. The incorporation of chip-based biometric checks further establishes the organization as a leader in implementing advanced security practices, offering a distinct competitive advantage.
Why Simple Visual Checks or Photo Uploads are no Longer Sufficient
Relying solely on visual checks or photo uploads might have been adequate in the past, but today’s fraudsters use advanced tools to create high-quality forgeries and deepfake images. Even trained human reviewers can miss subtle signs of manipulation or forgery. Manual reviews are also inconsistent, prone to human error, and difficult to scale as customer base grows.
Additionally, photo uploads without robust verification measures can be compromised or manipulated before submission.
Modern identity document checks require more sophisticated methods, such as automated document analysis, biometric comparisons, and chip-based data verification, to stay ahead of increasingly complex fraud tactics. Moving beyond simple checks enhances organizational security and supports adherence to evolving legal and regulatory standards.
The Challenges of Modern Identity Document Checks
As the digital world expands, verifying identities has become increasingly complex. Modern identity verification involves far more than checking basic photo IDs. It requires navigating advanced forgery techniques, deepfake technology, and a wide range of document types issued globally. Addressing these challenges is essential for building a robust verification process and ensuring comprehensive protection against fraud.
Increase in Forgeries and Deepfakes
Fraudsters now use highly sophisticated tools to produce convincing fake documents and deepfake images. These fakes can easily bypass basic visual inspections and even fool trained reviewers. Techniques like high-resolution scanning, digital editing, and artificial intelligence make it possible to alter or fabricate IDs with remarkable accuracy. Deepfake technology has also made it possible to create realistic fake videos or photos that can deceive facial recognition systems. This is not just a theoretical threat.
In 2024, the Federal Trade Commission (FTC) reported that consumers lost over $12.5 billion to fraud, marking a 25% increase from the previous year. This surge is attributed not to a rise in the number of fraud reports – which remained steady at 2.6 million – but to a significant jump in the percentage of victims who reported financial losses, increasing from 27% in 2023 to 38% in 2024.
In its July 2024 report, the U.S. Copyright Office concluded that existing copyright and intellectual property laws are inadequate to address the challenges posed by AI-generated deepfakes. These digital replicas, while having legitimate applications, can be exploited for fraudulent activities, misinformation, and privacy violations. The report highlighted that current federal laws, such as the Lanham Act and the Federal Trade Commission Act, are limited in scope and often inapplicable to non-commercial or personal deepfake cases.
These numbers prove that relying on traditional checks is no longer enough. To ensure security, it is essential to employ advanced identity verification tools capable of detecting even the most subtle signs of tampering or synthetic media.
Complexity of Identity Documents Worldwide
As businesses expand internationally, they encounter identity documents from a wide range of countries, each featuring distinct designs and security characteristics. This diversity presents significant challenges for rapid and accurate document verification. While some identity documents incorporate embedded chips or holograms, others rely on security elements such as watermarks, microprinting, or ultraviolet patterns. Additionally, the existence of multiple versions of the same document type – due to frequent updates by issuing authorities – further complicates the verification process. Keeping up with these changes requires constant updates to the identity verification processes and access to comprehensive, up-to-date reference databases.
Without appropriate tools, there is a higher risk of overlooking forged documents or incorrectly rejecting authentic ones. The resulting complexity places additional strain on operational resources and can significantly slow down the identity verification process, potentially causing delays and creating compliance challenges.
Further Verification Options and Their Sources of Error
To enhance identity verification, organizations often implement methods such as selfie comparisons, knowledge-based authentication (KBA), or validation through third-party databases. Although these approaches can be beneficial, each carries inherent limitations that may result in inaccuracies.
Selfie comparisons depend on good lighting, high-quality cameras, and user cooperation. Poor image quality or environmental factors can easily lead to mismatches. Knowledge-based authentication relies on personal information, but data breaches have exposed much of this information to fraudsters. As a result, Knowledge-based authentication questions no longer provide strong security. Database lookups can return outdated or incomplete information, especially when dealing with international users or records that aren’t regularly updated.
Recognizing the limitations of these methods helps prevent over-reliance and supports the development of a layered, more secure identity verification process.
The Two-Step Approach for Reliable Identity Document Checks
In response to increasingly sophisticated fraud tactics, organizations require a verification process that is both efficient and highly accurate. A two-step approach – combining MRZ scanning with chip verification – has emerged as the gold standard for reliable identity document checks. The integration of these two methods significantly enhances security measures and ensures greater precision in identity verification procedures.
MRZ Scan as the First Step
The MRZ (Machine Readable Zone) scan is typically the starting point for verifying an identity document. This zone, found on passports and many ID cards, contains structured data that can be quickly read and analyzed by machines.
Advantages: structured data, fast comparison
When the MRZ is scanned, key data such as the document number, expiration date, and holder’s personal details are instantly captured. This structured format enables rapid comparison with data submitted by the individual and with entries in relevant databases. Adhering to international standards, the MRZ provides a consistent and dependable foundation for initial verification across a wide range of document types and issuing countries.
The high speed of MRZ scanning contributes to a seamless onboarding process and facilitates the early detection of discrepancies or expired credentials. This step sets the foundation for deeper identity document verification while ensuring efficiency and user convenience.
Learn more about “why MRZ in passports are not enough” in this article.
Chip Verification as the Gold Standard
After the MRZ scan, chip verification takes the identity check to the next level. Many passports and identity documents include a secure chip that stores biometric and personal data directly from the issuing authority.
Advantages: Data directly from the issuing authority, difficult to falsify
Chip verification enables access to digitally signed data that is extremely difficult to alter or falsify, even with advanced forgery techniques. This data typically includes a photo, biometric identifiers, and other sensitive attributes issued and secured by the responsible government authority. When compared with biometric input or submitted identification data, this information allows for highly accurate identity verification, effectively mitigating risks such as tampering and deep fake manipulation.
In contrast to MRZ data, which can be forged under certain conditions, chip-based data offers a significantly higher level of trust due to its cryptographic protection. The use of chip verification aligns with internationally recognized standards for identity assurance and fraud prevention.
As a result, this method provides a robust and secure foundation for verifying personal identity in both regulated and high-security environments.
Why MRZ Scanning and Chip Verifying Complement Each Other and Matching is Crucial
The combination of MRZ scans and chip verification establishes a robust, multi-layered defense against identity fraud. Each verification step addresses potential vulnerabilities in the other, significantly reducing the likelihood of successful manipulation. While MRZ scanning enables rapid detection of basic inconsistencies, chip verification offers a deeper level of assurance by confirming the integrity and authenticity of the document using secure, issuer-signed data.
Matching the data from both sources is crucial because it ensures that the person presenting the document is genuinely linked to the biometric and personal data stored in the chip. If either data source does not align, it’s a strong indicator of possible tampering, forgery, or identity theft.
This two-step approach ensures that only legitimate individuals are onboarded while effectively preventing fraudulent access.
Our Solutions: MOBILE SCAN SDK & MOBILE CHIP SDK
To help business to perform fast, secure, and reliable identity document checks, we offer two powerful solutions: the MOBILE SCAN SDK and the MOBILE CHIP SDK. These solutions are designed to function in seamless coordination, enabling a comprehensive verification process that aligns with current security and compliance requirements.
Overview of the two Products and Their Interaction
The MOBILE SCAN SDK allows to quickly and accurately scan identity documents using a mobile device. It reads and captures data from the MRZ.
With the data from the MRZ, the MOBILE CHIP SDK logs into the chip of an identity document, reads additional information and ensures the data’s authenticity by comparing it with the issuing authority’s secure information.
This combined approach ensures a highest level of assurance regarding both the authenticity of the document and the identity of its holder.
Advantages at a Glance
Data protection compliance (no data storage)
Both SDKs enable full compliance with data protection regulations. As neither solution stores personal data, privacy risks are minimized and legal requirements such as the GDPR are consistently met.
Sensitive customer information remains protected throughout the verification process, as data is processed only temporarily and solely for validation purposes. This strong focus on data privacy fosters trust and safeguards organizations against potential data breaches or misuse. The absence of permanent data storage significantly lowers the risk and complexity associated with handling identity information. As a result, compliance with data protection regulations becomes more straightforward, while overall confidence in the onboarding process is enhanced.
Photo from document for comparison with person being onboarded
The MOBILE CHIP SDK enables access to the confidential photo securely stored on the chip of an identity document. This image originates directly from the issuing authority, ensuring its authenticity and integrity. It can be compared with a live-captured selfie or other biometric input submitted during the verification process. This method strengthens security by effectively detecting impersonation attempts and preventing the use of manipulated media such as deepfakes. Furthermore, it supports a streamlined onboarding process through fast and accurate biometric comparison. By relying on verified and tamper-proof data, the risk of accepting forged or altered identities is significantly minimized.
According to ICAO recommendations
Both SDKs are developed in accordance with the strict guidelines issued by the International Civil Aviation Organization (ICAO). These globally recognized standards serve as a benchmark for secure identity verification and international document interoperability. Compliance with ICAO recommendations ensures that identity verification processes are aligned with established best practices in terms of accuracy, reliability, and security. This adherence enables the acceptance of identity documents from a wide range of jurisdictions while maintaining high regulatory standards. Observing these guidelines strengthens institutional credibility and demonstrates a clear commitment to data protection and identity integrity. As a result, ICAO compliance represents a foundational element in building a robust and trustworthy digital identity verification framework.
Developed according to ISO standards
The SDKs are developed in accordance with relevant ISO standards, ensuring a high level of quality, reliability, and security. ISO compliance encompasses both technical performance and data protection protocols, thereby minimizing the potential for errors or system vulnerabilities. This standards-based development approach ensures that identity verification solutions meet or exceed internationally recognized benchmarks. It also facilitates audit readiness and supports demonstrable compliance with regulatory requirements.
Platform-independent & easy to integrate
Both SDKs are available for the leading mobile operating systems iOS and Android, enabling integration into a wide range of mobile applications and environments without significant redevelopment efforts. This compatibility facilitates the seamless implementation of identity verification workflows into existing digital infrastructures. Comprehensive documentation and dedicated developer support further streamline the integration process. As a result, organizations can achieve reliable identity verification with minimal technical complexity. The ease of deployment shortens development timelines and contributes to reduced implementation costs.
Years of expertise in checking identity documents
Our solutions are built on many years of specialized expertise in identity document verification. As a result, the SDKs are not only technically advanced but also grounded in a comprehensive understanding of real-world fraud methods and document security mechanisms. This expertise enables continuous refinement and development to address emerging threats effectively. The technology has been proven in the field and reflects current best practices and industry standards. Organizations that implement these solutions benefit from consistent performance, reliable verification outcomes, and a security framework that evolves in response to the dynamic fraud landscape.
For Whom the Solutions are Suitable: Use Cases
These solutions are ideal for any business or organization that needs to verify identities securely and efficiently. Common use cases include banking, airlines, hotels, car rental, telecommunications, government services, and online marketplaces. They are also perfect for remote onboarding processes where customers need to verify their identity without visiting a physical location.
The integration of the MOBILE SCAN SDK and MOBILE CHIP SDK enables a seamless user experience while upholding the highest standards of security and regulatory compliance. These solutions are particularly beneficial for industries subject to stringent regulations or elevated fraud risk, delivering both operational assurance and a competitive edge.
For more information, please read our article on “Make or Buy Decision: Advantages of Buying an Identity Document Verification Solution”.
Success Stories: How our Customers Benefit From Secure Identity Document Checks
By adopting modern identity document check solutions, many businesses have enhanced their onboarding processes, reduced fraud, and ensured regulatory compliance. Let’s explore how two of our customers – PXL Vision and DYCOM – have successfully applied these technologies to meet their goals.
PXL Vision
PXL Vision, a leading provider of digital identity verification solutions, required a robust method for verifying identity documents with both speed and security. Serving clients in highly regulated sectors such as banking, telecommunications, and government, the company prioritized accuracy and regulatory compliance. By integrating secure identity document checks into its platform, PXL Vision successfully automated the reading of documents and biometric verification processes without compromising usability. As documented in their success story, the solution delivered measurable cost savings and strengthened fraud prevention efforts across multiple industries.
This case highlights how advanced identity verification technologies can offer both operational efficiency and compliance assurance in demanding environments.
DYCOM
DYCOM, a leading software provider for Switzerland’s police forces, needed to create a more efficient solution for law enforcement data capture. The company faced the challenge of developing a solution that could scan IDs, 2D barcodes, and vehicle license plates while remaining compliant with data protection regulations. The solution also needed to integrate seamlessly into their existing app and work offline. Additionally, DYCOM had to address the operational problem of police departments using different apps and devices for various tasks.
DYCOM chose the MOBILE SCAN SDK from OVD Kinegram because it offers universal data format handling, compliance with international security standards and EU data protection regulations, and reliable offline functionality essential for field operations. The MOBILE SCAN SDK provides one-scan capture of many data types, seamless integration into their existing application, and outstanding performance as a reliable data capture tool.
By implementing the MOBILE SCAN SDK from OVD Kinegram, DYCOM was able to replace two products from different suppliers with one integrated solution. This consolidation made the DYCOM solution more compact and reduced licensing costs. Furthermore, thanks to OVD Kinegram’s technology, DYCOM’s capabilities have expanded to cover new use cases, as the integrated solution can now read barcodes, scan IDs, and capture vehicle license plates.
Swiss police officers now benefit from a simplified and improved data capture process that automatically recognizes and captures data from identity documents, 2D barcodes, and vehicle license plates within fractions of a second, significantly enhancing their daily operational efficiency.
Conclusion: Why the Right Identity Document Check Makes all the Difference Today
In this article, you have learned how identity document checks play a critical role in ensuring security, compliance, and a seamless customer experience. As fraudsters use more sophisticated tactics and regulatory demands grow, the importance of choosing the right verification tools has never been greater.
Summary of the Advantages
Implementing a reliable, two-step identity document check – combining MRZ scanning with chip verification – delivers significant advantages in speed, accuracy, and fraud prevention. This approach ensures secure data handling, supports compliance with international standards, and enables the verification of identities across global user bases. Onboarding processes become more secure for legitimate individuals while effectively detecting and preventing fraudulent attempts.
Solutions such as the MOBILE SCAN SDK and MOBILE CHIP SDK provide platform independence, straightforward integration, and are backed by years of proven expertise. These SDKs support organizations in meeting regulatory requirements while simultaneously strengthening security and enhancing user confidence.
Risks Associated With Inaccurate Testing Processes
The absence of accurate and secure identity checks presents significant risks for organizations. Fraudulent documents and deepfake identities can bypass inadequate verification processes, resulting in financial losses, regulatory penalties, and reputational harm. Inaccurate or inconsistent methods may lead to false positives, inadvertently rejecting legitimate individuals and negatively impacting conversion rates. As fraud techniques continue to evolve, traditional visual inspections and outdated verification tools increasingly fall short of providing sufficient protection. Additionally, compliance with data protection regulations becomes more difficult to uphold, particularly in highly regulated sectors.
Without robust identity verification solutions from OVD Kinegram in place, organizations remain exposed at the very point where trust and security are most critical.
Request a Demo or Test the MOBILE SCAN and the MOBILE CHIP SDK now
This is the moment to enhance identity verification processes with proven, future-ready technology. Rather than reacting to fraud or compliance challenges after they arise, organizations are encouraged to proactively explore robust solutions. A personalized demo or trial of the MOBILE SCAN SDK and MOBILE CHIP SDK offers direct insight into their capabilities. Integration into existing systems is straightforward, enabling secure, efficient identity verification from the outset.
Experience our demonstrators and explore our robust digital identity verification solutions.
Contact us now to learn more or schedule a personal consultation with our identity verification experts. Take the next step toward faster, safer, and smarter identity verification.
